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NEW YORK, NY / ACCESSWIRE / August 3, 2018 / Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against National Beverage Corp. ("National Beverage" or the "Company") (FIZZ) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired National Beverage securities between July 17, 2014, and July 3, 2018, (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: www.bgandg.com/fizz.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
On May 4, 2017, National Beverage issued a press release stating that it "employs methods that no other company does in this area - VPO (velocity per outlet) and VPC (velocity per capita)." National Beverage asserted that it "utilize[s] two proprietary techniques to magnify these measures and this creates growth never before thought possible." On May 5, 2017, National Beverage issued a second press release, stating that "[o]ur impressive VPO calculator . . . is flashing solid green numbers as we bring FY2017 to a close."
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) National Beverage's sales claims and the supposed underlying "proprietary techniques" lacked a verifiable basis; (2) National Beverage's Chairman and Chief Executive Officer ("CEO"), Defendant Nick A. Caporella ("Caporella"), engaged in a pattern of sexual misconduct between 2014 and 2016; and (3) as a result, National Beverage's public statements were materially false and misleading at all relevant times.
On December 8, 2017, National Beverage issued a press release announcing its financial and operating results for the period ended October 28, 2017. Notwithstanding the Company's representations in its May 2017 press releases with respect to "creat[ing] growth never before thought possible," analyst Laurent Grandet of Credit Suisse assigned an "underperform" rating to the Company's stock. Grandet noted that National Beverage's business was driven "almost entirely" by the success of its LaCroix sparkling water brand, the growth trajectory of which was in fact slowing. That same day, Maxim analyst Anthony Vendetti reiterated a "sell" recommendation for National Beverage stock, noting that its "numerous weak brands and opaque financial reporting" made its sale "highly unlikely." Following this news, National Beverage's share price fell $11.91, or 10.56%, to close at $100.84 on December 8, 2017.